North Carolina Flood Insurance: Complete Guide for Homeowners in 2024

North Carolina homeowners need flood insurance from the National Flood Insurance Program (NFIP) or a private insurer to protect their homes from the state’s increased risk of floods.

Taylor Milam-Samuel
Taylor Milam-Samuel
  • 8+ years writing for major outlets, including MarketWatch and Business Insider

  • Master’s in Education

Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Updated June 6, 2024

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Hurricanes and flooding are the most common natural disasters in North Carolina. Together, they account for $310 million in annual property damage in the state.[1]

North Carolina homeowners must add a separate flood insurance policy because most homeowner insurance policies don’t include it. Depending on your home’s location and risk factors, your mortgage lender may require you to purchase the coverage.

Here’s how to find affordable flood insurance in North Carolina and the best place to buy it.

Quick Facts
  • The average annual cost of flood insurance in North Carolina is $925, higher than the national average.

  • The average NFIP flood insurance claim in North Carolina is $24,600, while the average flood claim payout in the U.S. is $52,000.[2]

  • Flood insurance covers damage to your property and personal belongings.

Do you need flood insurance in North Carolina?

Having flood insurance as a homeowner in North Carolina is a good idea. Flooding in the state is common and costly. Depending on the location of your home and whether you’re in a high-risk zone, your mortgage lender might require flood insurance coverage. Insurers also mandate coverage if you live in a special flood hazard area (SFHA) within a National Flood Insurance Program (NFIP) community.[3]

You can expect to pay for flood damage out of pocket if you don’t have coverage. The average flood insurance claim payment from NFIP in North Carolina is $24,600.[2] Without flood insurance, most property owners can’t afford to pay that amount out of pocket from savings.

Keep in Mind

Opting out of flood insurance could lead to having an uninhabitable house or debt that exceeds the cost of coverage. Because of that, it makes sense for North Carolina homeowners to set up a flood insurance policy.

How to determine your flood risk

The Federal Emergency Management Agency (FEMA) determines the flood risk for different areas of the country. The agency determines flood zones, which are geographic areas that are more likely to flood. Based on information about flood zones, insurers decide which housing areas require flood insurance.

As a homeowner or prospective homebuyer in North Carolina, you can use the North Carolina Flood Risk Information System to view the flood risk for a specific address.[4] Once you enter the address, you can see the flood risk as a percentage.

For example, some homes might have a 1% flood risk, while others have more or less. You can use this information to determine whether you want to prioritize flood insurance.

How much flood insurance costs in North Carolina

Flood insurance through the NFIP costs an average of $925 per year in North Carolina. Compared to the national average of $888 per year, North Carolina residents can expect to pay more for coverage, mainly due to the high number of hurricanes and the state’s location on the coast.

Homeowners can choose from two types of flood insurance: coverage from the NFIP or a private insurer. The rates depend on the home’s location, flood risk factors, and the amount of coverage you select.

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North Carolina counties with the highest flood insurance costs

Even though the average price for annual flood insurance coverage in North Carolina is $925, some counties have much higher flood insurance premiums. The counties included below have expensive average rates due to previous flooding, elevation, and the likelihood of claims.

For example, flood insurance in Wilkes County is nearly three times more expensive than the average cost in the state. The expensive price is partly due to past flooding events and the county’s location on a floodplain.[5] Depending on your home and location, you might be able to get an elevation certificate to lower the cost.

Here are the average annual flood insurance premiums for the most expensive counties in North Carolina.

Counties with the Highest Cost
Average Annual Cost of Flood Insurance
Wilkes County$2,728 
Madison County$1,808
Alexander County$1,774
Mitchell County$1,612
Swain County$1,553

North Carolina counties with the lowest flood insurance costs

North Carolina homeowners in some counties pay significantly less than the state average for flood insurance. If you live in a county with lower flood risk, you can expect to pay less for coverage. Insurers look at the flood history, elevation, and flood risk factors when determining a flood insurance quote.

For example, the cost of flood insurance in Granville County is nearly half the cost of the state average because of the county’s minimal flood risk.

The following counties have the cheapest flood insurance costs.

Counties with the Lowest Cost
Average Cost of Flood Insurance
Granville County$521
Hoke County$549
Dare County$594
Stokes County$621
Camden County$638

What flood insurance covers in North Carolina

Standard home insurance policies don’t include flood coverage. Flood insurance covers losses due to flooding. FEMA defines a flood as excess water on typically dry land that affects one to two acres or at least two properties.[6]

For example, if a sewer backup causes flooding in your house, it must be due to a flood to be covered. If your sewer has backed up for a different reason, like lack of maintenance, your flood insurance policy won’t cover the claim.

The NFIP offers two types of flood insurance policies: coverage for the home’s structure and coverage for the contents. If you have both types of insurance, it covers the following:[6]

  • Electrical systems, including solar energy equipment

  • Water heaters

  • Appliances, including refrigerators and stoves

  • Permanent carpet

  • Built-in cabinets or bookshelves

  • Staircases

  • Detached garages

  • Water tanks and fuel pumps

  • Valuable items up to $2,500

  • Window curtains

What flood insurance doesn’t cover in North Carolina

Even though flood insurance in North Carolina covers most types of damage from a flood, it has some exclusions. NFIP flood insurance policies won’t cover the following expenses:

  • The cost of temporary housing and food while your house undergoes repairs

  • Fences, pools, decks, and patios

  • Valuable papers like stock certificates 

  • Other buildings

  • Cars

  • Items in your basement

How to buy flood insurance in North Carolina

Homeowners can buy flood insurance through the NFIP or a private insurer, which provides a range of choices. If you decide to buy a policy through the NFIP, you can work with one of the program’s 50 private insurance partners or through NFIP Direct.

Both options — the NFIP and private insurers — have benefits and drawbacks. The NFIP is a flood insurance program through FEMA, part of the federal government that handles relief after natural disasters. Some homeowners find it helpful to have a federally backed flood insurance company. The NFIP might also provide policies in high-risk areas where private insurers won’t.

But private insurers can offer higher maximums than the NFIP. Because of that, private insurance might make sense for homebuyers with expensive homes or high-end interior design. Some private insurers also have waiting periods shorter than 30 days, which means you can get an active policy sooner.

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Companies that sell NFIP policies in North Carolina

The NFIP partners with 27 flood insurance companies in North Carolina. Homeowners in the state can work with an insurance agent to get a policy from Allstate, The Hartford, Liberty Mutual, USAA, and more.

You should consider the potential benefits and drawbacks of having an NFIP policy.

Pros
  • Federally backed program through FEMA

  • Homeowners in high-risk areas can qualify for coverage

Cons
  • Maximum coverage of $250,000 for the home’s structure and $100,000 for the contents

  • Doesn’t provide flexibility for insuring additional items

Private flood insurance companies in North Carolina

Private insurers also offer flood insurance in North Carolina. Most companies specialize in flood insurance as a separate policy. Homeowners can work with Neptune Flood Insurance, Wells Insurance, North Carolina Flood Insurance, SFI Group, and more.

Here are some pros and cons to consider about private flood insurance policies.

Pros
  • Higher maximums for property damage and personal belongings

  • More flexible policies that can include additional items or structures

Cons
  • Fewer safeguards and less federal oversight

  • Sign-up process might be more complicated

North Carolina flood insurance FAQs

Making sure you have flood insurance in North Carolina is important if your home is at risk. The following information can help answer your remaining questions about coverage in the state.

  • What flood zones require flood insurance in North Carolina?

    Homeowners in high-risk flood zones A and V need to purchase flood insurance in North Carolina.

  • Is flood insurance expensive if you aren’t in a flood zone?

    Flood insurance is less expensive if you don’t live in a high-risk flood zone. The average annual flood insurance premium for a primary residence is about $467 through NFIP’s Preferred Risk Policy for residents with property in B, C, and X zones.[7]

  • Is flood insurance only available through FEMA?

    No. Though the NFIP is a federal program, you can choose to purchase flood insurance through a private insurer.

  • What is a flood rider in North Carolina?

    A flood rider is an add-on insurance coverage you can add to existing coverage you have for your home or another property. Standard homeowners policies don’t cover damage from flooding.

Sources

  1. U.S. Department of Energy. "State of North Carolina Energy Sector Risk Profile."
  2. FEMA. "Historical Flood Risk and Costs."
  3. FEMA. "Flood Zones."
  4. North Carolina Flood Risk Information System. "Am I at risk of flooding?."
  5. FEMA State of North Carolina. "A Report of Flood Hazards in Wilkes County, North Carolina."
  6. FEMA. "What flood insurance covers."
  7. FEMA. "Facts and Myths about Flood Insurance."
Taylor Milam-Samuel
Taylor Milam-Samuel

Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.

Taylor has been a contributor at Insurify since February 2023.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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